Negotiating Tips

I spent most of last week in a very intense contract negotiation.  In the end, I seem to be getting most of what I desired, and the other party seems pretty content with what was decided as well — essentially a win-win.  Although this is always the goal, unfortunately it is not always the outcome.  I thought a post covering some negotiation tips would be a good topic for this week.

The first tip I have is to make sure that you spend sufficient time preparing for the negotiation, as this is the mistake many people make. They are too overconfident in their negotiation skills and ultimately falter.   Be sure to consider the interests and issues of the other party, and you will find a common target point. Also consider the outcome for both parties if an agreement is not reached.

During the negotiation the first thing you should try to do is build a rapport and try to get in sync with some topic.  Maybe you both like sports, or fishing, etc.  This softens the negotiation instead of just jumping into the issues. Also always be self-aware as negotiations are very fluid and your behaviors are very important to the outcome.

I believe a key to a successful negotiation is learning as much as you can about the other party’s interest and needs during the negotiation to the extent to which they appreciate yours.  Don’t be afraid to ask questions.  The answers to these questions may provide the leverage you need to have a successful outcome. The more information you can gather about the other party, the more you will better understand their position, and ultimately their objective. If you follow these simple tips, you can reach an outcome which both parties feel is acceptable.